Follow the author of this article

Follow the topics within this article

Barclays has posted a jump in profits despite booking a fresh £600m charge to cover the spiralling cost of payment protection insurance mis-selling scandal that has dogged the banking industry for years.

Boosted by a bond trading revival at its investment banking business, the lender reported a 35pc surge in third quarter profits to £837m, sending its shares up nearly 5pc. Profits were up even though Barclays set aside more money to account for the extension of the deadline for PPI claims by a year to June 2019, a provision that takes the bank’s total bill for the scandal to £8.4bn.

Tushar Morzaria, the lender’s finance director, said the charge was likely to be its last PPI hit.